Information: Elon Musk's decision to slash Twitter's spending on servers could be a playbook that other cash-strapped companies could follow as the downturn squeezes IT budgets
Twitter was on course to hit$3B of negative cash flow for FY23 due to depressed ad revs & increased costs (debt payments) prior to recent round of cost-cutting
Early on XMas Eve, staff flew to Sacramento — the site of 1 of Twitter’s 3 main computing storage facilities — to disconnect servers
Musk has reduced Twitter to a bare-bones operation, and employees are under a “zero-based budgeting” mandate to justify any spending
Over the past few weeks, Twitter had stopped paying millions of dollars in rent & services, and has had told subordinates to renegotiate those agreements or simply end them
Janitorial & Security have been cut, and in some cases employees have resorted to bringing their own toilet paper
Twitter has laid off or fired nearly 75% of it’s work force
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